Airlines promise to keep cheap fares

Qantas and Virgin Blue say they will not raise ticket prices in the wake of Ansett's collapse and have guaranteed that discount tickets will stay on the market.

Both airlines, while not guaranteeing yesterday how long airfares would stay at present prices, said they had no immediate plans to change fares.

Meanwhile, Transport Minister John Anderson said Ansett's collapse probably signalled the end of super discounting, but the government was waiting on a report from the Australian Competition and Consumer Commission about airline competition.

"You may see an end to the savage discounting that probably created a lot of problems for Ansett in the first place, the $33 type fares," Mr Anderson said.

He said the government wanted to ensure competition between Qantas and Virgin Blue but did not want to overregulate.");document.write("

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"We don't want to nobble the two operators we have in an over-reaction. We want a balance, we want fairness but we want sustainability in an aviation sector that can grow," he said.

ACCC chairman Allan Fels said his competition watchdog, which was investigating a number of complaints against Qantas from last year over predatory behaviour and capacity dumping, would be keeping a close eye on the market.

"The lesson of Australian airline history ... is that the only way of getting good price results is through competitive pressure," Professor Fels said. "When we've had new players in, like the Compass/Impulse kind, prices have gone down. When they've left the market, prices have gone up."

Professor Fels said the Federal Government could introduce price controls, but they were difficult to regulate and enforce.

Virgin spokeswoman Amanda Bolger said the carrier would continue to offer fares in line with its discount philosophy.

"The only reason our fares will change is if there is a drop in the dollar or an increase in fuel prices," Ms Bolger said.

Qantas spokesman Michael Sharp said the airline had two million discount fares in the market for April and May.

He said the airline could cover the overflow of former Ansett passengers without problems, including during Victoria's Labour Day weekend from Saturday, March 9.

He said Qantas would also increase passenger capacity on its east coast to Perth routes, starting next week. with AAP